The Merchant Bank of Sri Lanka (MBSL) plans to intensify capital market operations maximizing opportunities from the current surge in the stockmarket and focus mainly on providing micro credit for rural entrepreneurs with the aim of building business tycoons at village level, says newly appointed Chairman, M.R. Shah.
In an interview with Business Times on Wednesday, he said the bank will provide more micro loans for small industries, entrepreneur development and for agriculture sector.
He noted that the recovery of micro credit given to ‘ordinary’ people especially in rural areas is not difficult because there is a far lower default rate than massive loans given to leading entrepreneurs.
Mr. Shah noted that his aim is to transform at least 10 selected small entrepreneurs in a district to business tycoons in the island under the MBSL micro credit scheme which will be implemented with strict monitoring process. It will pave the way for building around 250 top businessmen.
Referring to the performance of the bank in the financial year 2009, he noted that the MBSL Group recorded its all time high income of Rs.2.4 billion as against Rs.1.6 billion in the previous year with profits growing by 26% to Rs.283 million.